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tv   Your Money  CNN  June 24, 2012 3:00pm-4:00pm EDT

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shelters. but you can't go out and build an economic hurricane shelter yourself. that's something you need help with. government help. congress, for instance, could help stave off the effects of the storm, but they won't because that would mean being honest with you about things that are getting potentially worse and not better. and that kind of talk doesn't win elections, so congress sticks to what it does best these days -- partisan bickering and blame. and then, there's an entirely different storm brewing in washington. not the election, it's the so-called fiscal cliff. series of tax increases and spending cuts that are set to kick in on january 1st. now the conventional wisdom is that congress will get to it -- after the election. by then we could be in a recession. your presidential candidates tell you they can solve it but really they can't. from my perspective, it doesn't much matter who you vote for for president. the president gets all together too much blame and too much credit for what goes on in the economy. here's what will matter. you can cast a ballot for somebody this fall who can control the weather closer to
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your home. your member of congress. because congress writes and, if you believe in miracles, passes the types of laws that can fight off the coming storm. no matter what president obama or mitt romney say, they can only do so much to make you spend money and help create jobs. but congress can, and should. ultimately the best thing you can do is cast an informed ballot this fall for your senator, for your representative, for state and for city officials. and not one based on whether you're a democrat or a republican but one motivated by politicians who can put politics or at least partisanship aside to deal with this coming storm. we're covering the storm like no other network can by bringing together the best in the business. christine romans, anchor of "your bottom line" says we will fall off a fiscal cliff if congress doesn't act. candy crowley is cnn's chief political correspondent and anchor of "state of the union." i'm going to ask her point-blank if there's a word from either candidate she takes seriously about the economy. mark preston is cnn's political
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director. he spent six years covering congress. he says don't hold your breath for something to happen any time soon. will cain is a cnn contributor and a conservative. he says the best thing congress can do is maintain the status quo. and harvard economist ken rogoff is one of canada's lead iing analysts. candy, you follow this more closely than anyone else. you have been with candidates for as long as -- i think i still had hair when you started following candidates around on campaign. now amidst all this partisan nonsense that passes for serious economic policy debate these days, is there a single word from either presidential candidate that a viewer who is concerned about this economy should take seriously? >> listen, i think you can take the gist of what they say seriously. we know that in general mitt romney is for not raising revenues and is for cutting
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spending, that that's -- that he favors more toward the don't raise taxes, cut more spending. we know that president obama thinks, yes, some taxes should be cut -- should be raised so you get sort of the generalities of it. but let me tell you a couple things about the specifics. the first is that, remember in 2008 when it was candidate obama, he fought very hard against the idea of an individual mandate for a health care insurance. so it depends so much on who he has to deal with by the time a president gets to office, so the more specific they get, people stand back and sort of go, yeah, but you got to deal with congress. >> that's a good place to bring mark in. mark, you heard me say, congress, along with possibly the federal reserve, holds the keys here and it would be great if they all got together and said, we're not waiting for the election, we're not waiting to see which way the political winds blow, we've got a job to do and it is going to take all the time we need until the end of december to get it done and
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you say that i'm smoking something. >> you are smoking something, ali, and you're probably living in california where it is legal to do that but the bottom line is this is not going to happen in my lifetime or your lifetime. we're less than five months now before a november election and we're talking about fixing commit. what republicans will tell you is that democrats and president obama have failed over the past couple of years to come to them and try to cut deals. so what is the urgency five months before the election? what they'll also say is the bottom line is that they can hold this off right now. mitt romney can become president. if republicans can maintain control of the house, then they can have a better unified effort to try to do things the way that they think they should be done. democrats are saying the same thing on the other side, ali. >> candy, let's talk about this. it does appear that there may be some solutions to be worked out by a congress, but congress is busy blaming the other side and they are all saying that president obama has not done as good a job as he can to put
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viable deals on the table or being a consensus builder. does this now become an important part of the campaign, not what your economic policies are but whether you can get anything done in washington if you don't control congress. >> when you look at who's going to decide this election as they do every election and that is swing voters, those who can vote -- can go either way, they tend to have a tendency to go to one party or another but have crossed lines. when you look at that group, what do they most want? they actually want a president who is willing to deal with the other side. so i think it is an important issue. i still think that the economy and how it's framed is the main theme of this election and will remain so. but certainly, your ability to compromise with the other side was a big reason that a lot of people liked the hope and change message of president obama because he, like president bush before him, promised to change the culture of washington, we're all going to get along, we're
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going to get something done -- but it didn't happen. but swing voters like that message. >> mark, i would really like to on that big wall of mine blame everybody. i'd like to put 535 members of congress and the senate up there and say, those of you who wait for the election to try and solve this problem are all on this wall and i will take off those faces and those names who have said i will not wait, we will compromise now, we will hammer out a budget deal, we will hammer out a debt ceiling deal, we will hammer out the bush tax cuts, we will hammer out entitlements now. would i have anyone to populate my wall withfy only chose those who were prepared to compromise? >> there would only be a few left. really what you'd normally find if you were to do that, you'd find centrist republicans and centrist democrats in the middle who, by and large, are elected every two years or every six years based upon the fact that they represent a state that is more accepting of centrist views. if you are a conservative democrat, if you are a liberal
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republican, those are the folks who are really talking compromise at this point. but again, it is the base politics that's driving all of this, ali. it is our liberal democrats, it is conservative republicans who want their members, their congressmen and senators to really dig in and hold back and to not cut these deals. inasmuch as we're talking about how bad the crisis is right now, let's talk the day after the election when we have sequestration and all these expiring tax cuts all coming to a head. we always talk about how dysfunctional washington is. wait until after the leak and you're going to see dysfunction. >> that's a ray of sunshine, candy? >> the fault, dear ali, maybe lies not in congress but in ourselves. more and more what we have seen is -- the census comes along every ten years and depending on whether your state legislature is republican or democrat -- there's different ways to do this -- they redraw those lines. what happens? the lines get redder, if it's a republican congress that you have in your state, and they get bluer if it's a democrat. so we are sort of
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self-segregating. so what happens. you are elected by a very democratic district or you are elected by a very republican district. we've had all these wave elections. the centrists are all but gone. what is your impetus to say to the folks that elected you, yeah, i know you elected me because i'm democrat like you but i'm going to cross this line. so we may have some fault here. >> absolutely right. mirror, mirror on the wall, who is the most responsible for this economic turmoil after all -- it is probably all of us. candy and mark, stay where you are. if your elected officials do wait until after the election to deal with that possible fiscal cliff like mark says they might, well, that's dangerous, it's irresponsible and it is cowardly. i know christine romans agrees with me but conservative will cain doesn't. we will hear why. no one's more qualified to weigh in on this issue than harvard's ken rogoff. the world's leading expert on financial crises. we'll be right back. [ male announcer ] count the number of buttons
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you'll hear this term for months to come. it is the storm within the storm that i'm telling you about. if lawmakers in washington can't get it together by january 1st, we'll dive right back in to recession, according to the congressional budget office. what is this fiscal cliff anyway? christine romans has been looking into it and is breaking it down for us. christine. >> it's bad. i'll see your storm and raise you a cliff, ali. two big forces are at play -- massive tack hikes, massive spending cuts. on january 1st the bush tax cuts, alternative minimum tax cuts expire. that means if nothing changes, your taxes will go up. at the same time medicare doctor pay will also go down. federal spending will be cut $1 trillion over the next nine years. half from defense and half from non-defense spending. the bipartisan policy center says that those cuts mean a loss of about 1 million jobs over two
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years. a million jobs over two years. not just government jobs, ali -- but jobs in the private sector as well. many from contractors working with the government. it will almost certainly cause a recession. the cbo says if congress drives us off that fiscal cliff, gdp will shrink at 1.9%. the economy is growing now. they're talking about early next year, seeing the economy shrink again. this is important. it's very rare for the cbo -- uncharacteristic for them to come out and say something like this. fed chairman ben bernanke who tries hard to stay out of politics has been warning congress about trouble ahead in the economy if congress doesn't act as well. what makes it so scary is this is all happening in an election year. no one expects congress to deal with these big issues until after november 6th. we're also approaching the debt ceiling again. we could hit it as early as december. just another thing to add to congress's to-do list. all the while, ali, the bond market? interest rates are super low here, sort of giving cover to the urgency of all this as well.
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>> absolutely right. it is still cheap for the u.s. to continue borrowing money. christine, thank you. ken rogoff, even two years ago, people would have said, what are you panicking about? the election is in november. this happens by december 31st, they'll get it. the basic -- the basic thing that a government has to do is get its budget together and they don't do that. so there's really -- ben bernanke's worried that congress may not get their act together. are you waerd or you think they'll work it out? >> i think they'll work it out but i don't know what they're going to work out. i think that's what scares everybody. it's hard to imagine they're really going to hit a deal before the election. there are just so many reasons for partisanship and sniping at each other. but they have such different investigations. ali, we've been paralyzed for years now. we haven't undertaken fundamental reform. we have been using band-aids and tape to sort of keep the economy moving along and this is a
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time -- a crisis is a time you take advantage to do things you couldn't do. we're still sitting here. think that's really the biggest issue in america today. >> you mentioned last week if this storm is coming, the federal reserve can play a big role and they did a little bit this week. what we expected them to do. they probably have more that they can do but there is also a role for congress. when i said congress can help build those hurricane shelters, i'm saying they can fix a bunch of thinks. you're saying simpson-bowles just gets swept under the table. you think that's something they could do? >> oh, yeah, they could fix the tax system and try to keep rates low but make it fairer, get rid of a lot of what they call tax expenditures, these tons of deductions. some of the people you're going to see losing deductions you like. but on the other hand, they can keep rates low and, by the way, i think this idea we can't raise anyone's taxes -- that's nuts. i mean it's not so simple. fairness is an issue here. but i think if you can keep the rates low so people want to work hard and they want to produce
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stuff, that's what makes america strong. >> we're going to come back to this conversation in a second. i want to bring will cain back into the conversation. you say we're headed for a recession if we're headed for a recession and that the best congress can do is maintain the status quo. i don't know if you actually said that -- >> i haven't said that once. >> i've just been making stuff up. >> you said it to goad me. look, christine's 100% right, towards the end of the year we're looking at a fiscal clifr. what we do is exacerbate what's already a downward trend in our economy. we must do something. status quo, no good. you must do something. our economy is already shaking, it is already uncertain. there are already storm clouds hanging over. ken talked about this -- europe, asia, our current debt situation in the united states. these are all pushing down on the united states economy. what can we do about that? besides dealing with the fiscal cliff, what can we do about this? i've got two theories. i'm going to give you 17th century religious philosophy here, ali. >> whoa!
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>> that's right. >> you understand this show is called "your money." >> paregardless of your economi philosophy, you might as well vote for mitt romney. here's why. if you believe austerity is the way to economic growth, cutting taxes, cutting government spending, well, you got to vote for mitt romney. right? he says that's what he had's do. but if you believe stimulus is the way, government spending, the way to economic growth, well, you ought to go vote for mitt romney as well. why? because while president obama says he believes in stimulus, he can't deliver it. ali, he's had three years and he's not been able to put together another fiscal stimulus package. while mitt romney says he believes in austerity, i think there's a chance he doesn't. i think there is a chance he has no interest in short-term government spending cuts and you might as well take that
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probability chance. you might as well find out, mitt romney, he may believe in the stimulus. you know what? he could actually get that through congress. he could call it infrastructure invest. combine it with tax cuts and maybe actually get it through congress. president obama is simply a bad bet no matter what you believe in. that's what i think. >> wow. you see, ken, what i got for goading him and misrepresenting him for the first half-hour of the show. >> where's the hole in my game, ken? where am i wrong? >> well, i mean i think what ali said at -- towards the top about there are a lot of issues having to do with what congress is going do is the big question here. >> right. >> the president is a leader, but they can't do anything without congress. we have a very divided congress. the center's been disappearing, by the way. so it's been very hard to get a compromise done. i must say, with these storms coming in and you look at the history of financial crises, when you really dig yourself a deep hole is when you get hit with a problem and you're paralyzed. you can't react quickly.
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there's a danger. we're moving in that direction with the very fractured government that we have. i'm not sure i quite come to your equation. i'm trying not to be partisan here, will. but it's a great graph. >> i think whether or not congress needs to act, your point of acting is exactly right. i think romney's the only one who can actually force action. from 17th century theology to 21st century economics, we've got you covered here on "your money." i'm going to bring christine romans back. after that demonstration by will, i hope christine has something to top it. we'll continue to talk about how you can make a difference to protect yourself from this storm that's headed your way. there are actually things very specifically that you can do that we haven't suggested yet. stay with us. i went to a small high school. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure
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i tell mike what i can spend. i do my best to make that work. we're driving safely. and sue saved money on brakes. now that's personal pricing. we're back with our conservative theologian will cain, christine romans and ken rogoff. listen, i want to just give you a picture of what's going on. there are lots of things. the economy is a come plifkted beast but really the one that
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makes you feel things are getting better or worse is in this economy, jobs lost or created. let's look at the last year. let's take a look at this, first of all. this is a cnn/orc poll that points out something you all know. the economy is the most important issue to 52% of those polled. right after that is deficit and health care, which kind of all have to do with the economy. right? if you had deep pockets, health care is not really your problem. we all know you can get health care. i'm a little puzzled by the 2% that say the policy toward gays is the most important issue in america, but that is the beauty of democracy. jobs created in the last 12 months, there have been jobs created every single month for the last 12 months. when i'm telling you about the storm i'm not telling you -- we're in a terrible situation but right before that hurricane watch is on shore, it is a sunny day. in january a lot of jobs were created. few less in february, march, april, and may, it is a trend
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that's starting to worry us. we hear conflicting things from people about what happens to jobs based on whether it is barack obama or mitt romney. i've heard you say no jobs are going to get created because of either of them right off the top. >> it is demand. it is the things that they can do. there are so many levers involved in kree yanat creating. one of them is confidence in leadership, maybe, but there are so many other things and it is demand for these companies. when i talk to companies big and small they are looking at europe, they are looking at political issues in europe and a slowdown in europe. they say i'm not going to have any more workers while europe's slowing. maybe they don't want to add as many workers. maybe coming out of our recession they don't think they need as many workers as they used to because thinks are just changing so quickly. >> everybody in america has seen this happen, right, ken? businesses are doing okay. they're getting profitable. they're just not hiring anybody back. what is that confidence that a
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presidential candidate can instill that will make a difference on the margin, that will make us feel better, that will make us invest, that will make us spend? >> i think you can have a huge difference in laying out a groundwork to build america over the longer term. i don't think there are any quick fixes here. we are in a mountain of debt. we're surrounded by europe with a bigger mountain of debt. they're short-term financial problems where you just kind of have to swim through. but that doesn't mean you don't have a vision of where you want to be. there is an issue of where our jobs are going to be, how we're going to have infrastructure or education. i think fairness is an issue. there is no doubt that this globalization has really, really helped the richest and not been as good for the lower income -- >> the economic consequence of that, many will point out, is that the richest don't need to spend as much of their income as the poor do. so when you give people at lower income levels more money, if you are looking at that as a way to stimulate an economy, it tends to be more effective. >> yeah. i mean that's sort of a
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keynesian rationale but it's a balance between those two things. if people don't feel it is fair, we'll end up with an even crazier political system. >> we're going from election to election not talking about structural changes and how globalization are going to mean our grandchildren are going to have a different standard of living. what if you have a kid who's average in america? what do you tell an average kid in america what your voices are going to be when we have all of this? >> your analysis was very interesting. that if you believe in austerity or stimulus it equals romney in the end. my argument -- i've been saying this now for a few weeks. why don't they just tell you the truth? why do i have to believe that you tell me that mitt romney might do the right thing. why can't we all just be honest about the fact that there are storm clouds coming. that's not partisan. i'm not trying to scare anybody. i just want people to know this is not something that either of them on their own can fix and its -- we're in for the long
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haul. >> i think i disagree with you. i don't think they're being dishonest about the economic situation we're in. i think they both recognize it. i think they don't want to spend their time sounding pessimistic. where there is an economy, what would they do to guard us against that pressure. i don't know about romney, truthfully what his economic policy is. >> you really think he's the guy who's prepared to guide congress through stimulus? then i'm not voting for him because that just makes him a liar. >> you bet on certainties. i can tell you one thing for certain -- president obama can't execute on his vision anymore. he may believe in economic stimulus. he just can't execute it. you might as well bet on the probability that mitt romney's not telling you the truth about what he believes. >> that's one way to look at it. i want to ask you, ken, you have said this many times. it becomes sort of common for you to say it because i associate you with it -- you think that there's something to be done on infrastructure. tell my audience again what you mean. >> well, i mean you look at
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world rankings of infrastructure and we're just drifting down them. if you go -- even to the china, you go to spain, you go anywhere, their infrastructure's gotten better than ours is and that ultimately affects your competing for jobs, especially manufacturing, but many other things. we can improve these things. there's more subtle things like your electric grid, the internet and stuff that require government money. interest rates are very low. if you can borrow and effectively spend on these things, that's a win. that's a win-win. because even though your debt goes up, it helps you grow faster to pay it off later. of course, if it is all a pork barrel project as will would say, well, it's not going to work. >> will feels nobody's going to use the word stimulus again but maybe if we just start talking about infrastructure spending. >> if i'm right there is not that much difference in these candidates and ken's right the long term issues of what we need to instill confidence, then the choice is clear. >> that is right.
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on this note we agree. k ken, stay right where you are. the storm raging in europe is starting to hit our shores. does the president need to be tougher on europe, and would that even make a difference? ♪... ♪... ♪... choose the perfect hotel and sounds vying for your attention. so we invented a warning you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there's danger you might not see, you're warned by a pulse in the seat.
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geico, see how much you could save. the economic storm raging in europe is very real and it is a very real threat to our own fragile economy. mitt romney says elect him or the u.s. is headed for disaster. >> if i were not to get elected, we would instead in my view become more and more like europe with higher deficits, with debt that could put us in a greece or spain or italy-like circumstance. >> did he just say that? joining me now, my good friend richard quest, host of cnn's "qwest means business." kneel kashkari, a managing director at pimco, one of the world's largest bond fund managers. they manage more than $1.7
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trillion. what that means is these guys invest in debt at home and around the world so they know a lot about europe's cash crisis. neal is also the former assistant director of the treasury. you remember he ran t.a.r.p. ken rogoff is here as well. i want to make something clear right now. i hear americans saying america is on the path to becoming the next greece. the u.s. will never be like greece. the american economy is dynamic with flexible labor laws and designed around a common purpose. richard, the u.s. is not greece. am i wrong? >> you're right up to a point. but then you conveniently overlooked -- yes, you may not be greece, per se, but you have the fiscal cliff. you can sleep walk towards it, and if things don't go exactly according to plan, you could tumble over it. in an ideal world, things go according to plan -- but, these
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things go wrong usually by asking, as we discovered with the debt ceiling last year. a deadline missed, a decision taken wrongly, and all of a sudden a bad situation becomes worse. >> ken, greece has new leadership. but the storm i'm talking about is already ravaging the country. it's been doing it for years, by the way. does it now matter to you what greece does or is this story already on its way? >> greece isn't the only story and it is not the immediate story but it is not so. by the way, ali, the new leadership looks an awful lot like the old leadership. they're basically the same parties that have gotten greece into trouble. nobody has confidence in them. i don't think they have the power to really change things. i don't think anybody does. you can't go through 100 years of evolution in a few years so greece is still a problem. eventually going to be leaving the eurozone. but there's spain, there's italy, there's everybody. >> neal agrees with the idea that they eventually -- don't
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know when -- but leaving the eurozone. president obama things europe has the capacity to solve this crisis on its own. listen to what he said at the g-20 a couple days ago. >> even if they can't achieve all of it in one fell swoop, if people have a sense of where they're going that can create confidence and break the fever. >> in america if people have a sense of where they're going, that could instill confidence or break the fever. he chose to tread very lightly at the g-20. i happened to think he should have been tougher and that europe needs to be made to understand that half measures are of no consequence and they can take the world into a recession. can't they? >> oh, oh -- >> richard, is that you? you're not even on camera and you're groaning and making noises. >> in a minute. >> ali, they absolutely can. president obama is right, they do have the capital to deal with their problem. you're right, they need to be decisive to put out the fire once and for all. but europeans understand this. president obama lecturing them is not going to motivate them,
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is not going to open their eyes. they understand what they need to do. the challenge is if they come in aggressively and put out this fire once and for all, it takes the pressure off the greeks, off the spaniards, off the portuguese to make tough choices. as ken rogoff said, the greeks have been doing this for 100 years so the germans are saying we're not going to put out the fire. we need to keep pressure on the greeks to make tough choices. that's why this crisis has dragged on for two years. that's why it's likely going to drag on for several more years, because it is going to be band-aids and half measures. >> richard, i don't know what is happening to him over there, what's going on? >> all right. i agree fully with everything that's been said but i'm going to put one reason or excuse from the european side and it's this -- they simply don't have the ability, the structures, the, if you like, bureaucracy in which they can do this. the way this has been set up is
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classically your lohorse built a committee which turns into a camel. therefore, yes, in an ideal world you would take those swift decisions, you'd cut through and make them, but you're talking about 17 eurozone, 27 eu countries and it's not that practical. i'll give you one example. the new bailout. the new bailout package that they've got, the esm that's been set up. even that is now being litigated in the german courts as being unconstitutional for germany. so you get an idea. i was frustrated and angry and i'd use other words if it wasn't a family network -- the inability to deal with this crisis. but i'm starting to see the enormous nature of the task that they're facing. >> right. and as you pointed out, some of these things by steaccident. as neal points out, sometimes it only happens when your back is against the wall. we would assume europe has felt
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the wall before now. you'll remember, neal was in the room when decisions were made, sometimes mistakes were made and accidents happen. i'm going to talk to him about how we accelerate this process. 15 global banks have been downgraded. some of them are the biggest names you know -- jpmorgan chase, bank of america, citi, ratings agencies may have a bad reputation. but coming up next, i'll tell you why this is a big deal, why it is hurting the united states, and why it is their fault -- not the democrat or the republicans, but, yeah, richard, the europeans. ou see it ? there it is ! there it is ! where ? where ? it's getting away ! where is it ? it's gone. we'll find it. any day can be an adventure. that's why we got a subaru. love wherever the road takes you. wow, there it is.
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i'm back with richard quest. neal kashkari and ken rogoff. moody's downgraded 15 major
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global banks this past weekend, including three in the united states db ba-- bank of america, jpmorgan chase and citi because of their exposure to the european financial crisis. your investments are safe as long as you have $250,000 in any one account. if you don't, don't waste your time watching this channel. change the channel, watch sports or something else. in this economic downgrade, it is one more assurance that we are all connected and that the crisis in europe actually does affect americans in a big way. the downgrade means the banks, which may hold your portfolio, might be -- which you may hold in your portfolio -- might be less profitable because it will cost them more to borrow money. neal, we are not talking about the fact that these banks are like greece, or like lehman brothers. where they are not going to be able to pay back their debts. what we're saying is that some of what americans think are the safest institutions in the country are at some risk of what moody's calls yut sized losses
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if things continue to go down. this is risk management, this is saying if things continue to get worse and worse, some of these major banks could take a hit and be at greater risk for not being able to pay back their debts. is this serious? >> well, look. you're exactly right. it is serious because the banks do have exposures to europe. we don't think the eurozone will frankment into the 17 currencies. if it did, it would be very bad for the global economy and very bad for u.s. banks. but we are investing our clients' money. we trade with many of these banks. we do business with them. we assess their credit risk to make sure they are good stable entities for us toe eninteract h and transact with. so it is an important topic. we have been watching it for a long time. we do think most of the banks fundamentally are very healthy but they are at risk. you're right, there is a lot at stake. if europe doesn't get control of its situation, we're not going to be immune to it.
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hello, i'm fredricka whitfield in atlanta. we want to take you straight to cairo where for the first time the president-elect, the new democratically elected president-elect, mohamed morsi, is now addressing the people of egypt. let's listen in. >> translator: -- and their cheers and sacrifices. this moment which we arrived in history with all these sacrifices. i wouldn't have been able to stand here in front of you as the first elected president without the determination of the egyptians in first free election after the revolution. i wouldn't have been able to stand here in front of you with all this joy that is happening
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throughout our beloved egypt. i wouldn't have been able to take a stand for you without the success of allah almighty and then to the sacrifices and the blood. therefore, all that matters is the blood of our martyrs and those injured. and thanks and gratitude and salute go to the martyrs, to the mothers of the martyrs, to the fathers of the martyrs, to all my people, those who lost -- who lost beloved ones and sacrifices them for the sake of egypt.
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with all sincere prayers to all these martyrs and injured. and with their blood have reached this moment. once again i emphasize once again, thanks and gratitude to the families of all those who taught their children the meaning of martyrdom and nationalism, those who were resilient when they lost their dearest ones as the prize for freedom. those who were patient. i pledge once again that these blood -- blood will not go in
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vain. all these gratitude and -- goes to the mission of egypt. the armed forces and members of the armed forces, with all my heart i salute them and love. nobody knows that apart from god almighty. i love these ones and appreciate their role and adamant to strengthen them, to preserve them, and to preserve this big establishment which we all love and respect. and to all those honorable police forces, my brothers and my children, those who are --
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have got their wrong picture that they think that i have -- i have less than gratitude than others and that is not true. those who commit crimes are punished by law, but the members of the police, the honorable members of police and the majority of them are my brothers and my children, members of the police forces. i must salute them because they have the role in the future to restore the stability and maintain security from inside. and inside. also, a salute to all judges of egypt who oversaw the election,
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even those who didn't monitor but all judges of egypt are respected. they are the third establishment that must be maintained as we have an order to be high, independent, independent from the executive authority and that will be their role in the future, that judges will be independent. we say to all sectors of the people, to my people, my tribe, i say to them, to this momentous day with your elections and
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after that, that i am the president for all egyptians wherever they are, inside or abroad, in every age and cities and villages, eastern borders, northern borders, western, borders, southern borders, in the middle, our vast land and our generous, hospitable people and people all over in the west and the north and delta of egypt and all the people and
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alexandria and in the oasis and in the red sea and the south after sinai and the south of egypt and other areas and the oasis. all my family, the whole egyptians are my family, the muslims, as well as the coptic and the christians and the men and women, the old, the elderly, and the youth the fathers and mothers, the farmers and workers, the employees, teachers, university lec lekt
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tourers and employees in the public sector and all government departments, drivers of trains and taxis. those are my families, professionals, small merchants, those selling bread and butter on the roadsides and students and in the private schools and public schools i hope i don't forget to mention anybody. they are all my family i tell you on this moment tus day, i am
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president for all egyptians and i will be for all egyptians. none will be differentiated in any way for respect for the law and constitution. i must nt forget the people of the intelligence and the diplomatic missions abroad who are preserving the country. i do not forget them. you great egyptian people, the beloved living in our hearts, our homeland that we all love that has made the world, that has surprised the world with
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their electorates. outside police stations or the election in march or the latest election which ended on the 17th of june and today we celebrated its results and i respect these results that surprised the world with the people cueing to cause their votes, egypt today, egypt the homeland, egypt the nation, to unify. >> for the first time in the history of egypt, a
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democratically elected president. the president-elect, mohamed morsi, now addressing the egyptian people. he won representing the muslim brotherhood winning over the former prime minister under the hosni mubarak. winning by 1 million people with 50 million casting their ballots in this runoff election. you heard him saying his message is momentous to all the people of egypt representing all the parents and muslim and coptic christians. we will much more on the meaning behind that the democratically elected mohamed morsi in just a few moments.
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hello, everyone. i'm fredricka whitfield in atlanta. welcome to the "newsroom." in cairo, egypt, there ir huge celebrations take place in tahrir square at the same time shall the new president, mohamed morsi is addressing and speaking to all egypt shuians. he has a message for muslim, christians, coptics, mothers, fathers. our ben wedeman is there overlooking tahrir square. it is nightfall. there are cheering crowds and fireworks. it is like a sea of egypt

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